Okla. Admin. Code § 340:25-5-351 - Allocation and distribution of collections

Current through Register Vol. 39, No. 2, October 1, 2021

(a) Authority. Oklahoma Department of Human Services Child Support Services (CSS) allocates and distributes support collections, per Section 657 of Title 42 of the United States Code ( 42 U.S.C. § 657 ) and Sections 302.32, 302.51, and 302.52 of Title 45 of the Code of Federal Regulations ( 45 C.F.R. §§ 302.32, 302.51, and 302.52 ). CSS collects fees, per 42 U.S.C. § 654, 45 C.F.R. § 302.33, and Section 237 of Title 56 of the Oklahoma Statutes (56 O.S. § 237).
(b) Fees. CSS collects fees, per 42 U.S.C. § 654, 45 C.F.R. § 302.33, and 56 O.S. § 237. A case is exempt from fees when the custodial person (CP) is currently receiving Temporary Assistance for Needy Families (TANF). Fees are withheld prior to child support distribution to the CP. CSS collects:
(1) an annual fee on eligible cases, per 45 C.F.R. § 302.33. When there is more than one Title IV-D child support program involved, CSS collects the annual fee on cases when Oklahoma is the initiating state; and
(2) a three percent service fee for each payment distributed to the CP, up to a $10.00 per month maximum except when the CP is currently receiving SoonerCare (Medicaid).
(c) Allocation.
(1) General allocation. Allocation refers to how a payment is divided among eligible obligations. Some obligors have more than one child support case and the allocation rules determine which case receives all or a portion of the collection received. A collection is allocated based on the source of the collection and the type of legal action resulting in a collection.
(2) Allocation models. CSS divides collections among the obligor's eligible obligations based on the following models.
(A) Standard. All payments not made by income withholding order or federal income tax refund offset are allocated to eligible obligations in (i) through (iii):
(i) prorated to the current child support, cash medical support, and spousal support;
(ii) prorated to the monthly payment plan on past support; and
(iii) amounts remaining from the initial collection or additional collections received during the same month will allocate based on a prorated share of total arrears owed on all eligible obligations. The allocated amounts cannot exceed the total arrears due on the cases.
(B) Income Withholding Order (IWO). Periodic payments from an IWO are allocated to eligible obligations in (i) through (iii):
(i) prorated to the current child support, cash medical support, and spousal support;
(ii) prorated to the monthly payment plan on past support and other judgment(s), such as judgments for genetic testing costs; and
(iii) the steps in (1) and (2) of this subsection are repeated for amounts remaining from the initial collection or additional collections received during the same month, until the entire collection is allocated.
(C) Internal Revenue Service (IRS). Collections received from the offset of federal income tax refunds are allocated according to the existing federal hierarchy, per 42 U.S.C. § 657 and 45 C.F.R. §303.72. CSS allocates only to balances certified to the IRS. CSS applies these collections to each eligible obligation:
(i) first to balances certified to the IRS as public assistance; and
(ii) then to any CP's certified balances.
(3) Specific enforcement actions. Collections received from case-specific enforcement actions are not allocated across all cases, but are allocated to the case(s) in which the action is taken.
(4) Non-Title IV-D cases. In non-Title IV-D cases, CSS allocates payments as follows:
(A) payments received from an IWO are allocated using the IWO model. Collections are allocated to non-Title IV-D cases based on the amounts listed in the non-Title IV-D IWO; and
(B) all other payments are allocated using the Standard model. When CSS receives information on processing a specific payment, CSS may allocate the payment based on that information.
(5) Intergovernmental cases.
(A) Incoming. In cases where CSS is collecting support for a CP who is receiving services from another jurisdiction's child support agency, past-due payments are allocated based on information provided by the initiating state.
(B) Outgoing. Collections received from other jurisdictions resulting from an outgoing referral are allocated to that case.
(d) Distribution.
(1) CSS distributes collections based on the federal distribution hierarchy, per 42 U.S.C. § 657 and 45 C.F.R. §§ 302.32 and 302.51.
(2) CSS initially distributes collections to current support and current cash medical support obligations due each month. When collections are less than the amount of all current support and current cash medical support due, CSS distributes collections between the current child support and the current cash medical support obligations in proportionate shares.
(3) After the current child support and current cash medical support obligations are met, CSS distributes collections to current spousal support due.
(4) After current child support, current cash medical support, and current spousal support obligations are satisfied, remaining collections for the month are distributed to past-due balances.
(5) CSS distributes payments to interest owed after current child support and principal arrears balances are paid in full to each obligation.
(6) When a payment collected represents current support for future months, the amount is applied to such. When past support balances exist on any of the noncustodial parent's cases, payments are not applied to the next month's current support, per 45 C.F.R. § 302.51.

Notes

Okla. Admin. Code § 340:25-5-351

Added at 9 Ok Reg 3275, eff 6-26-92 (emergency) ; Added at 10 Ok Reg 1813, eff 5-13-93 ; Amended at 15 Ok Reg 159, eff 11-1-97 (emergency) ; Amended at 15 Ok Reg 1614, eff 5-11-98 ; Amended at 16 Ok Reg 3463, eff 10-1-99 ; Amended at 17 Ok Reg 2426, eff 7-1-00 ; Amended at 18 Ok Reg 1226, eff 7-1-01 ; Amended at 20 Ok Reg 1240, eff 7-1-03 ; Amended at 21 Ok Reg 1344, eff 7-1-04 ; Amended at 23 Ok Reg 1842, eff 7-1-06 ; Amended at 25 Ok Reg 1307, eff 7-1-08 ; Amended at 26 Ok Reg 3036, eff 7-21-09 (emergency) ; Amended at 27 Ok Reg 161, eff 10-8-09 (emergency) ; Amended at 27 Ok Reg 1201, eff 7-1-10 ; Amended at 28 Ok Reg 812, eff 7-1-11 ; Amended at 30 Ok Reg 641, eff 7-1-13

Amended by Oklahoma Register, Volume 34, Issue 24, September 1, 2017, eff. 9/15/2017 Amended by Oklahoma Register, Volume 36, Issue 24, September 3, 2019, eff. 9/16/2019 Amended by Oklahoma Register, Volume 37, Issue 24, September 1, 2020, eff. 9/15/2020

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